• Trump states he has no intention of firing Federal Reserve Chair Jerome Powell.
• Markets react positively, with the Dow soaring over 1,000 points.
• Trade negotiations with China appear to be easing, boosting investor confidence.

US President Donald Trump assured the public on Tuesday that he has “no intention of firing” Federal Reserve Chair Jerome Powell, following a series of aggressive statements that had caused significant market turmoil. This announcement immediately helped spur a substantial rebound in the stock market, with the Dow Jones Industrial Average surging over 1,000 points amidst renewed optimism regarding both Federal Reserve policies and impending trade negotiations with China, according to South China Morning Post, India Times, and Anadolu Agency.

Trump's earlier frustration with Powell's reluctance to cut interest rates had led to a sharp decline in equity markets, as investors expressed fears over the potential politicization of the Federal Reserve's operations. The President described Powell as a “major loser” in earlier posts, contributing to market instability, according to HuffPost, New York Times, and India Times.

After the announcement, Trump's tone shifted toward trade, emphasizing that tariffs imposed on China would need to be reduced from the current high levels to alleviate pressure on both US and global markets. This marked a significant change from his previous hardline stance which had contributed to market volatility, reports New York Times, The Jakarta Post, and Reuters.

The sudden optimism in the markets reflected more than just Trump's comments; such remarks underlined the ongoing tension between the need for accommodative monetary policy and the constraints posed by high tariffs. Analysts suggest that while the stock rally may have roots in short covering and recovery, the fundamentals of the underlying trade situations remain complex, according to Forbes, CBS News, and Reuters.